$400 Million Move from USDC Issuer: Local Payment Channels Targeted

Circle’s reported $400 million deal for Tazapay stands out as a move to connect USDC to local payment channels in emerging markets.

According to reports by CoinDesk, Circle plans to acquire Singapore-based payment company Tazapay for approximately $400 million. The deal demonstrates Circle’s strategy to go beyond being just a USDC issuer and gain access to licenses, banking connections, and payment infrastructure across various countries.

Tazapay has payout channels in more than 100 markets. The company’s relationships with banks and fintech firms in Asia, the Middle East, and Latin America could provide Circle with ready-made local connections that might otherwise take years to establish. Irfan Ganchi, Circle’s head of payments, noted that building such relationships—which provide access to local currencies and banking systems—can take years.

Circle Could Complete the Last Mile of the Payment Network

Circle is developing the Circle Payments Network (CPN) for cross-border payments. CPN connects financial institutions to settle transactions on the blockchain. However, the network does not directly hold the local licenses required to collect funds and pay out to recipients in many countries.

According to Clear Street executive Owen Lau, Tazapay could function as a last-mile payment operator to bridge this gap. The company can handle regulated activities such as customer due diligence, fund collection, and payouts. The goal is to bring USDC together with local currencies and enable broader use of Circle’s payment network in emerging countries.

While the total circulation of stablecoins has exceeded $300 billion, USDC’s circulating supply stands at approximately $74 billion. In contrast to Circle’s presence in developed nations, Tether’s USDT is widely used in emerging regions such as Asia and Latin America. The Tazapay deal is seen as an attempt to accelerate Circle’s race to access local payment infrastructure in these markets.